(SHOW YOUR WORK)

Each lamp manufactured at Bright Light uses a standard of 0.75 hours to produce. Production employees are paid a $9 hourly wage. The company incurred 5,000 direct labor hours at a cost of $47, 500 to produce 6, 700 lamps. Calculate the following variances and determine if it is considered favorable or unfavorable: a. Direct labor rate variance b. Direct labor time variance c. Direct labor cost variance To produce one finished good, RPC Corporation sets a standard of 0.9 hours at a rate of $10 per hour. When producing 10,000 finished goods, the company incurs a $5,000 favorable time variance, although the company actually paid employees an hourly rate of $10.50. Calculate the following and determine if variances are favorable or unfavorable: a. Direct labor rate variance b. Direct labor cost variance c. Number of actual hours